island real estate in the global prime sector WELCOME... PRIVATE PARADISE n this issue of the Candy GPS Report, produced CONTENTS in partnership with Deutsche Asset & Wealth The gaze of the ultra-high-net-worth individual (UHNWI) has settled upon the remotest of Management and featuring exclusive research from trophy assets – the private . Anna White debates the allure of this real estate market I PRIVATE PARADISE with the experts from Candy & Candy, Savills and Deutsche Asset & Wealth Management Savills, we focus on island real estate around the world. Surrounded by water and finite in number, The ultimate trophy asset for ultra-high-net-worth individuals is a private island encapsulate much of what is desired by ultra-high-net- worth individuals (UHNWIs). They are both exclusive and rare, where the best properties carry a significant THE WORLD OF ISLAND REAL ESTATE price premium over their mainland counterparts. Our research looks in depth at these markets and pinpoints We have identified four primary and distinct island markets the hot spots around the globe. We also look at the sustainability of these islands and the rise of private planes that are putting them within easy reach. THE A LIST ARCHIPELAGO

We rank the world's top islands for UHNWI investment

PLANE TRUTHS

Nicholas Candy Private jet planes put the remotest corners of the CEO, Candy & Candy earth within reach for UHNWIs

ISLAND MARKETS IN FOCUS

Whether it is for business, leisure or investment

there is an island to suit your requirements Steele Point, Tortola

world away from city super flats or star, the qualities "remote" and "private" are to create luxury resorts, wealthy conservationists countryside retreats, the purchase of a priceless. Albeit a piece of Alaskan wilderness, for working in tandem with governments to preserve A GREEN AND PLEASANT ISLAND Aprivate island is an emotional one, driven the sole purpose of fishing, or a peaceful paradise in wildlife havens and high-net-worth individuals who by a desire to discover a new lifestyle. To the the South Pacific, the buyer has to balance deserted consider the urban playground to have become too established wealth of the Americas, Western but accessible, and untouched but connected, accessible and lost its glamour." We look at the sustainability of these island Europe, and Russia, the allure of such real estate while the price is determined by necessities such as According to private fortune experts, Wealth X, micro-economies is not new. "A private island is the ultimate trophy there has been a 4% rise in the size of the global asset," says Nicholas Candy, CEO, Candy & Candy. UHNW community, with a 5.4% jump in value. "But financial return is not the primary motivation. And of the $56 trillion pool of wealth held by the These buyers are seeking the ultimate hideaway and For the super rich, the world's super rich families, 25% of their investment FUTURE TRENDS a chance to shape their own world." qualities "remote" and portfolio is dedicated to real estate – much or which There is a strong correlation between Northern "private" are priceless is return-generating for family offices and HNWIs. We look at the factors changing the shape of island Hemisphere-dwelling UHNWIs chasing the sun and While British entrepreneur Sir Richard Branson uses real estate markets buying in the Southern Hemisphere. The Seychelles, his private island as a family retreat, it is also a luxury in the Indian Ocean, or Florida Quays, off the running water, power, internet access and sanitation. resort. Dietrich Mateschitz, owner of the Fijian east coast of the US, for example, both appeal as However this intrepid investor is at the very top of a Laucala Island, has developed what is arguably the retreats for family and friends. complex, multi-layered island market place which is ultimate, exclusive island retreat for paying guests. Mallorca, Spain In some cases the purchase of a private island is inhabited by many different species of buyer. Multi-national hotel groups are now considering an eco-philanthropic gesture to preserve the natural "There are three main categories of buyer," says buying entire islands for development. Salman Madhi, Head of Key Clients Relationship The Candy GPS Report is published by Candy & Candy. All information correct at time of going to press. All rights reserved. Articles may not be reproduced without written permission from Candy & Candy. Opinions expressed are habitat of an island at risk and restrict public use. Pockets of new, emerging wealth are particularly those of the author and not Candy & Candy, Deutsche Asset & Wealth Management or Savills UK Ltd. While every care is taken in compiling the content, neither the publisher, nor Deutsche Asset & Wealth Management, nor Savills UK Such an investment is about lifestyle choice over Management, Deutsche Asset & Wealth prevalent in Asia. This burgeoning class of UHNWIs Ltd assumes responsibility for effects arising from this publication. Management. "Developers looking for opportunities financial return. For the super rich or a Hollywood is still young, fixated with urban investments, The material is for general information purposes only and has not been produced or reviewed by any Research Department in Deutsche Bank.

Investment advice: The information and opinions expressed in this report do not constitute professional advice and should not be relied upon. Specific advice relating to your individual circumstances should be obtained. The value of investment can fall as well as rise and you might not get back the amount originally invested.

02 THE CANDY GPS REPORT 03 The world of island real estate

particularly in London and . Although £100,000 per year, pension pots have been ravaged, as a private beach – the public can legally moor and The pinnacle of achievement is to own what is exclusive and rare, so for yields have dropped from double to single digits there is little return on bank savings accounts and visit a sandy shoreline. the world's wealthy an island property goes hand in hand with their luxury over the last few years these global cities offer rising property prices in the UK are deterring them "Governments are also piling into the private financial and political stability, luxury shopping with a from investing savings in domestic real estate. island market," says Charles Weston-Baker, Director, apartment in a prime city district. Yolande Barnes of Savills World Research "doing business" culture. The immature Asian market The affluent silver spender is buying up prime island Savills International Residential. Recession-ravaged looks at the global drivers and identifies four distinct island real estate markets therefore continues to put its money into property holiday homes, staying there for more than 182 days countries such as Greece have woken up to the in these high status urban locations. a year and saving on tax. In the main, tax efficiency, wave of revenue that could be generated by leasing "But while the top end of the private island market as a motivation to buy on an island, is diminishing. clusters of private islands. But investors must hen it comes to owning island real estate, remains largely uncharted territory for new Chinese In this era of transparency buying on Jersey, approach the purchase of a private island with buyers fall into two main categories money, they are starting to dip their toe in the water, Guernsey or Cyprus, is being replaced by other caution, and not be swept away with the romance Wof "Agglomerators" and "Dispersers". purchasing uber prime property on the party islands drivers, such as the pursuit of the island lifestyle. of owning their own mini kingdom. Access, running Dispersers are, by definition, difficult to define off the south coast of , not to mention Ibiza water, sanitation and power suppy are all major because they seek independence and seclusion. and Sardinia," says Yolande Barnes, Director, Savills considerations," he says. Some will seek real estate in their home patch, World Research. The last 10 years were the decade of prime urban others will simply seek to get away from it all. For UHNWIs in search of Between 2009 and 2014 the number of super property investment, the next 10 years will see a those in this group buying islands, the lure is more yachts – defined as in excess of 24m – has tripled adventure seek out the growing appetite for island lifestyle. The lower end likely to be an "invisible" island; difficult to reach, from 74 to 212. A luxury boat and a paradisical rarest opportunity of the luxury island market is set to explode as away from prying eyes and possibly undeveloped. destination, such as a private beach or resort on young money buys into ultra prime property and Agglomerators are those who seek real estate in an inhabited island or a wholly private island, are resorts on the world's most sociable islands. close proximity to others like themselves. When two complimentary investments, with the former But purchasing an island, or a slice of an island, is This spurt of activity will also drive demand at the it comes to islands, this is more likely to mean providing access. not without concerns. Even the reclusive billionaire top end of the market. The uber wealthy, in search developed and resort islands with a strong social During the recession, the fortunes of the world's wants relatively easy access to his new hideaway. of the ultimate adventure, will seek out the rarest aspect. Agglomerator islands can be either "visible" UHNWIs flourished, as they were well positioned Piracy worries those buying in the Seychelles opportunity, paying a premium for scarcity. Whether or "invisible". "Visible" islands are often in high to take advantage of unusual investments. However with its proximity to Somalia, and off the coast of the buyer seeks a fishing island in Uganda's Victoria demand. They are close to land, serviced and often the aspirational market – those purchasing luxury Northern the population of salt water Lake, or invests in the boutique islands off , the developed, but the surrounding water acts as a holiday homes – slowed down. While this buyer is crocodiles pushes global investors south to the world's wealth is soon to discover the island lifestyle, transparent barrier. The owners are there to be slowly returning, the global financial downturn has Whitsunday Islands and those around the Great adding to their portfolio of urban mansion blocks, seen and envied. "Invisible" agglomerator islands Marina Cay and Virgin Gorda, thrown up a more unlikely class of investor. Barrier Reef. Those considering the Mediterranean farmland or gaming reserves, and chasing a sense of have a similar social cachet but may be less well For those retiring from career earnings of plus should also be aware that there is no such thing being somewhere, not just anywhere. known to the outside world. Often more remote developing nations. required on site, minimising costs, while the island and difficult to reach, the surrounding water forms In the quality island market, prices fell during the remains open and unsecured (but without built a natural "gated community" away from onlookers, global financial crisis when discretionary purchases assets to protect). takes this approach other than those you want to share your view with. of all types were curbed. In core markets, such at his island Little Hall’s Pond Cay in . We have identified four distinct island sub as the Bahamas, prices are still yet to recover There are distinct trends among regional markets: from their pre-recessionary highs. Price falls have purchasers. Europeans are increasingly turning been most acute among secondary islands, where to the overseas market given the very restricted, Private islands prices have fallen by as much as 90%. National The ultimate trophy asset governments and preservation organisations are Table 1 – PRIVATE ISLAND TENURE TYPE Particularly appealing to "Dispersers", private islands taking advantage of this and buying up swathes BY GLOBAL REGION

represent the ultimate trophy asset. This is a small of island real estate. At the other extreme, some FREEHOLD LEASEHOLD

segment of the real estate market, behaving more European markets have performed strongly – 100% like fine art or precious jewellery, which operates notably the Mediterranean – underpinned by quite independently of the wider property world. the extreme scarcity of quality islands with 80% Buying an island is a "purchase of passion" not development rights. Buggerru, Sardinia, 60% driven by need or economics, and the best islands There are two approaches to securing, managing

often stay within families for generations. and maintaining a private island. The first is 40% The private island market is a two tier one. transforming it into an income-generating asset

According to Vladi Private Islands, just 5% can be by developing a resort and amenities suitable for % OF PRIVATE ISLANDS 20% classed as "quality islands", that is those in close letting. This ensures all the facilities and staff are 0% proximity to the mainland, in regions of political operational and regularly utilised, while contributing stability, with development permits, the potential to running costs. It is the approach taken by Richard ASIA EUROPE AFRICA to add services and infrastructure and with security Branson at Necker Island in the British Virgin Islands. CARIBBEAN

UNITED STATES SOUTH PACIFIC of tenure. The remainder "private islands" do not The second approach is to leave the island SOUTH AMERICA meet all these criteria and have limited potential for undeveloped, the owner instead visiting by yacht, Source: Savills World Research, Private Islands Inc, permanent habitation. This is particularly the case in which acts as residence during the stay. No staff are listings as at Q3 2014

Desroches Island, Seychelles Assos, Kefalonia, Greece

04 THE CANDY GPS REPORT 05 individuals with assets in excess of $30m. with neighbouring Jura in the Inner Hebrides, attract Relocation islands financial services offer and also developing other close to a city. In the Florida Keys, for example, The Balearics have a similar role for European UHNWI second home purchasers. Country pursuits A permanent lifestyle or business move areas of industry. In Cayman, for example, where the islands become progressively less intensively UHNWIs, where the likes of Ibiza and Mallorca are at the heart of these islands’ appeal: Islay is Agglomerators may seek "relocation islands" for finance contributes 55% of the island’s GDP, "Health developed and more 'invisible' the more causeways have long established second home markets. Ibiza famous for its woodcock, while Jura is renowned for specific tax, business or social aims, but they also City", is being developed, a medical tourism facility that are crossed and the further they are from the attracts a diverse range of sophisticated buyers its stalking. Both islands attract wealthy visitors from appeal to dispersers wishing to be more discreet. aimed at providing affordable healthcare to the mainland. Near to shore, they are connected to the from the Spanish mainland and across Europe. This around the world, some of whom chose to make a This class of island attracts the world’s wealthy US and Canadian market. It has also established mainland by road and easily commutable to major diversity of buyers has helped it to quickly recover more permanent investment. On Jura, a former who seek a more permanent move, whether to "Cayman Enterprise City", a special economic zone cities and conurbations. Our analysis of UHNWI from recessionary lows. Villa prices in the best spots city banker purchased the 14,000 acre Ardfin take advantages of the local tax regime, lifestyle, or planned to attract new technology, finance and holdings of island real estate reveals a huge bias have already returned to their pre-peak levels. Estate in 2012, comprising a 16 bedroom mansion, for business. Bermuda, the Bahamas, the Channel education investment. towards city-linked islands, and is concentrated In cooler climes, leisure islands are more likely seven uninhabited islands and 10 miles of coast. Islands, Antigua, British Virgin Islands, the US Virgin within the United States (see Table 4 overleaf). to be "invisible". The Scottish islands of Islay, along Islands and the Isle of Man all come under this City-linked islands A property on this kind of island provides the category. Self-governing, "low tax jurisdictions", they Island life but with city convenience benefits of island living; a peaceful environment, offer low levels of personal taxation and generally City-linked islands attract both agglomerator and beaches, golf courses, and sea views, but with the TABLE 2 – TOP 10 "LEISURE ISLANDS" no capital gains or inheritance taxes (see Table dispersers but it is more difficult to be "invisible" city and all its amenities, business opportunities BY VOLUME OF UHNWI ADDITIONAL HOME OWNERSHIP 3 below). Economic activity in these islands is dominated by professional financial services, which Rank Island Country accounts between a third and half of GDP, bringing 1 Hawaiian Islands USA with it highly paid jobs and attracting residents 2 Martha's Vineyard USA relocating for business and employment. 3 Tasmania AUStRALIA Edgartown Harbour, Martha's Vineyard, USA 4 Balearics SPAIN and expensive, European private island market. 5 Ionian Islands GREECE Comparatively affordable Caribbean and North 6 Whitsunday Islands AUSTRALIA islands can be safe American islands are popular with these buyers, 7 Sardinia ITALY havens during global particularly those islands with a climate suited to 8 Islay, Scotland UK economic unrest winter vacations. 9 Pangkor MALAYSIA The private island market in Asia is extremely 10 Koh amui S THAILAND small, partly because, in most countries, foreigners Source: Savills World Research, Wealth X These islands have strong links to city markets may only purchase leasehold (see Table 1 on (Channel Islands to London, Bermuda to New York, previous page). Asian buyers typically do not buy for example), feeding both financial capital and islands for leisure purposes, rather they seek an property buyers. They share some characteristics asset that will generate income, developing a resort of city real estate markets and can be safe havens or subdividing for onward sale. during global economic unrest. A high exposure to The private island model has been replicated in the financial services sector has left some of these man-made form, most famously with Dubai’s "The islands exposed to changes in the financial services World", an artificial archipelago of 300 small islands landscape. The wider international regulatory constructed in the shape of a world map. The regime and general clamp down by western majority of these islands are being developed for governments on tax avoidance also threatens those commercial use, with a mixture of resorts and retail. islands whose only raison d’être is tax. In light of this, these islands are diversifying their Ibiza, The Balearic Islands Leisure islands Second, third oR fourth homes Leisure islands can be "visible" or "invisible", Table 3 – Headline tax rates in selected island jurisdictions depending on the nature of amenities and pursuits involved. Most leisure island real estate is at the Guernsey Jersey Cayman Bermuda Bahamas AntiguA UK heart of the additional home market for UHNWIs, representing the ultimate "get away" from city Personal income tax 20% 20% 0% 0% 0% 0%-25% 20%-45%

living. Additional home purchases on islands are Corporate tax 0%-20% 0%-20% 0% 0% 0% 0%-25% 21% nearly always discretionary, made when economic conditions have created spare cash. As such, Capital gains tax 0% 0% 0% 0% 0% 0% 18% or 28% islands with large second home markets did suffer Stamp duty 2%-3% 1.5%-5% 4%-7.5% 1%-7%* 4%-10% 2.5% or 7.5%* 0%-15% disproportionately in the global economic downturn. VAT or equivalent 0% 5% 0% 0% 0% 15% 20% Examples of "visible" leisure islands are the

Hawaiian islands and Martha’s Vineyard. These * For non citizens stand out as attracting the most UHNWI second Sources: Savills World Research, States of Guernsey, States of Jersey, Cayman Islands Government, Government of Bermuda, Government of Bahamas, Government of Antigua and Barbuda, UK HM Revenue and Customs home owners globally, benefitting from their proximity to the United States with its 70,485 Tanera Mòr, Summer Isles, Scotland. Photography by: Colin Prior

06 THE CANDY GPS REPORT 07 Premier "city-linked" island real estate can cost up to four times that on the mainland

US city-linked island real estate can cost up to four times that on and infrastructure just a bridge crossing away. of private islands the neighbouring In the US, property in the premier "city-linked" island CAN BE CLASSED AS mainland real estate markets can cost up to four times that on the neighbouring mainland (see Table 4 below). "QUALITY ISLANDS" The popularity of city-linked islands is not just CLOSE TO THE MAINLAND, a US phenomenon. Some islands in Hong Kong’s POLITICALLY STABLE WITH harbour and within a ferry or power-boat ride of SECURITY OF TENURE, the city are starting to enjoy more popularity and DEVELOPMENT PERMITS have the potential to become desirable boltholes or AND POTENTIAL TO commuter islands. ADD INFRASTRUCTURE The model has been replicated in Dubai with the man-made Palm Jumeirah, one of the world’s largest artificial islands. Extending to 5km2, it has more than doubled Dubai’s coastline. The market on the man- made island has rebounded strongly from Dubai’s market downturn as the development establishes itself and retail elements come on stream. Prices have increased by up to 50% in the last year, making it one of Dubai’s top performing sub markets. Key Largo, Florida Keys Local tax regimes and strong links to world city markets in Guernsey, TABLE 4 – TOP "CITY-LINKED ISLANDS" IN THE US BY VOLUME OF UHNWI REAL ESTATE INVESTMENT Jersey, Cayman, Bermuda, Bahamas and Antigua The private island model has been replicated appeal to residents in man-made form, most famously with relocating for business UHNWI Price premium over Dubai's "The World" ISLAND CITY LINK STATE RANK neighbouring city

1 KEY LARGO MIAMI fLORIDA 90%

2 LONGBOAT KEY SARASOTA fLORIDA 89%

3 KEY BISCAYNE MIAMI fLORIDA 281%

4 SANIBEL ISLAND CAPE CORAL fLORIDA 295%

5 JOHNS ISLAND CHARLESTON 52%

6 MARCO ISLAND NAPLES fLORIDA 62% Real estate golden visa or visa investor 7 KEY WEST MIAMI fLORIDA 134% The second home market is Buoyant programmes are often key to reviving residential in , Martha's Vineyard and markets. The longest running started In St Kitts 8 BOCO GRANDE CAPE CORAL fLORIDA 494% the Balearics and Nevis in 1984 9 HILTON HEAD ISLAND SAVANNAH SOUTH CAROLINA/GEORGIA 76%

10 IsLAMORADA MIAMI fLORIDA 144%

Source: Savills World Research, Wealth X, Tulia

08 THE CANDY GPS REPORT 09 Top 20 A list Islands Primary Prime 4 bed RANK Group Region Island Type Population Connectivity sources of house occupiers (typical price)

North International 1 Bermuda Relocation 64,000 Global $4,000,000 Atlantic airport

International 2 Bahamas Caribbean Relocation 319,000 Global $1,700,000 airport

Regional 3 Channel Islands Europe Relocation 165,000 Regional $2,500,000 airport

British Virgin Regional 4 Caribbean Relocation 27,000 Global $3,000,000 Islands airport

International 5 AntiGua Caribbean Relocation 80,000 Global $1,500,000 airport

Islands adjoining North Road to 6 west coast of City-linked 57,000 National $1,710,000 America mainland Florida*

Regional 7 US Virgin Islands Caribbean Relocation 106,000 Global $1,910,000 airport

North International 8 Hawaiian Islands Leisure 1,353,000 National $2,000,000 America airport

Islands adjoining North Road to 9 east coast of City-linked 47,000 National $2,000,000 America mainland Top 20 Florida** International 10 Cayman Islands Caribbean Relocation 57,000 Global $2,370,000 A List islands airport

Islands adjoining North Road to 11 City-linked 51,000 National $1,670,000 the Carolinas*** America mainland

North Road to 12 Florida Keys City-linked 80,000 National $1,410,000 America mainland

North National 13 Nantucket Leisure 10,000 National $2,400,000 America airport

International 14 Saint Martin Caribbean Leisure 78,000 Global $1,500,000 airport

Pacific Regional 15 Fijian Islands Leisure 858,000 Regional $1,970,000 Asia airport

16 Saint Barthelemy Caribbean Leisure 9,000 Local airport Global $7,000,000

Martha's North National 17 Leisure 15,000 National $2,000,000 Vineyard America airport

International 18 Seychelles Africa Relocation 90,000 Global $980,000 airport

Man made islands Middle Road to 19 City-linked N/A Global $4,000,000 off Dubai **** East mainland

San Juan Islands North Ferry / road 20 Leisure 67,000 National $1,460,000 & Whidbey Island America to mainland

Source: Savills World Research * Longboat Key, Sanibel & Marco Islands ** Key Biscayne, Merritt Island *** Johns Island, Bald Head Island, Hilton Head Island **** Palm Islands The A List Archipelago

Paul Tostevin of Savills World Research ranks the world's top islands for UHNWI real estate investment, based on the following metrics: the volume of UHNWI property holdings; SCANDINAVIA transport links to mainland markets; sources of capital and ISLANDS OFF SCOTLAND & IRELAND occupiers; tax regime and real estate prices BRITISH COLUMBIA ISLAY & JURA ISLE OF MAN SAN JUAN ISLANDS & CANADA EAST COAST GUERNSEY/JERSEY WHIDBEY ISLAND BRITTANY GREAT LAKES

MOUNT SARDINIA MARTHA’S VINEYARD BALEARICS IONIAN ISLANDS NANTUCKET MEDITERRANEAN USA EAST COAST CYPRUS

HAWAIIAN PALM JUMEIRAH ISLANDS

PHILIPPINES

KOH SAMUI PHUKET PANGKOR MALDIVES SEYCHELLES BALI

PACIFIC ISLANDS JOHNS ISLAND, BALD HEAD ISLAND, WHITSUNDAY HILTON HEAD ISLANDS BERMUDA FIJIAN FLORIDA ISLANDS MUSTANG ISLAND, GALVESTON LONGBOAT KEY, KEY BISCAYNE, MERRITT ISLAND AUSTRALIA & SANIBEL ISLAND, MARCO ISLAND NZ COAST

BAHAMAS TASMANIA FLORIDA KEYS BAHAMAS PRIMARY ISLAND TYPE

LEISURE ISLANDS

BRITISH VIRGIN ISLANDS ANGUILLA RELOCATION ISLANDS CAYMAN ISLANDS SAINT BARTHELEMY SAINT MARTIN US VIRGIN ISLANDS CITY-LINKED ISLANDS ANTIGUA MONTSERRAT PRIVATE ISLAND HOTSPOTS CENTRAL AMERICA Source: Savills World Research, Wealth X

ST VINCENT & THE GRENADINES

10 THE CANDY GPS REPORT 11 PLANE TRUTHS

Private jets put the remotest corners of the earth within reach. With the aircraft on the creditworthiness of the borrower, but a rule Enter the middleman finance industry on the flight path to recovery, buying one is getting a little of thumb is that mainstream lenders will advance up Getting the right lending structure is crucial, but is Private jets: Get to 75% of the purchase price of a new or nearly new about more than simply providing money. Unlike a onboard easier – though not, alas, any cheaper. Deutsche Asset & Wealth Management private jet, and up to 50% to 60% of a used aircraft. home mortgage, the contact between the aircraft looks at the options available However, only a relatively select group of lenders finance provider and the client remains close Full ownership are currently active in the pre-loved plane space, throughout the term of the loan. For instance, Buying a private jet outright can cost which saw prices drop by over half in some aircraft for every private jet it finances Deutsche AWM anywhere from a handful of million dollars othing shrinks the planet like a private jet. For island habitués and other time-pressed categories. “You need a depth of experience and conducts annual audits to make sure the aircraft for a pre-owned model to around $200 million A top-end model will get you where you travellers en route to the remote, access to private knowledge, both of the aircraft industry and of is being maintained and operated in line with the for adaptations of the new Boeing Dreamliner Nwant to be quicker than anything in the skies air travel is even more of a blessing. The nearest credit risk, to accurately price loans on used jets,” highest industry standards. and latest Airbus A350 Jetliners. that isn't armed to the teeth and being flown by a stop-off served by a commercial airline may be a explains Chris. For a suitable client, Deutsche “Buyers are looking for a trusted partner to military pilot. many-legged journey from your island paradise or AWM will finance or re-finance jets even up to guide them through the entire process,” says Steve Fractional ownership The Gulfstream G650, for instance, can cover the prospective oil field. In any case, no matter how 20 years old. Wainwright, who heads a team that looks after Fractional jet ownership shares start at one- 6,800 miles between the islands of Honolulu and billiard-table flat the first-class bed may claim to be, wealthy Deutsche AWM clients in Africa and Israel. sixteenth, which equates to about 50 flying Singapore in 14 hours. With a maximum operating it's not your bed, is it? Finance, your style “That can even include helping our clients choose hours a year. Fractional programmes are speed of over 700 mph, it comfortably outpaces Beyond the basics, financing rapidly becomes as a model of aircraft that's right for them, as well as usually administered by a company that owns commercial aircraft, and that’s before you factor Cleaner air bespoke as private jet interiors. “The circumstances finding a suitable operator.” several jets and takes care of the piloting, in the go-when-you-want convenience of private With a vast array of customisation options of every wealthy individual are unique, so a Because manufacturers typically require maintenance and so on. aviation and the delays avoided in by passing available to buyers, life onboard a private aircraft customised solution is essential,” says Dubai- purchasers to part-fund construction of an aircraft, public terminals. It will also set you back $65 million, can be as luxurious as it gets at 41,000 feet. based Callum Watts-Rehman, Head of the Gulf for lenders play a key middleman role even before a Operating lease but what price time? Down on the factory floor, however, conditions Deutsche AWM business, whose clients include jet- jet is airworthy. “The lender is often the only party Owning an aircraft involves a number of have been turbulent in the wake of the financial owning UHNWIs. “From where the jet is registered with strong relationships with both buyer and time-consuming commitments. Operating A Small world crisis. The good news is that the business aviation to the repayment structure, everything needs to be manufacturer,” says Eva Pace, a Deutsche AWM leases provide a way to effectively hire a jet Worldwide there are approximately 15,000 industry is recovering steadily, if patchily. New tailored.” relationship manager who looks after wealth clients for a specified period. Leases can be wet or business aircraft, twice as many as 15 years ago. orders are rising slowly and used jet prices For example, while some lenders will only in Latin America. That puts them in an ideal position dry: i.e. with or without a crew. Roughly two-thirds of them are in North America, are improving. provide full payout facilities – meaning the total to keep negotiations on track, particularly when a with Europe accounting for another 15%. Not Another sign business aviation is healing is that amount borrowed is paid back evenly over the little give and take is required on either side. Other Gulfstream G650 surprisingly, the growth of private jet use is fastest some of the financial institutions that pulled out of loan term – others will structure loans with lower “It's crucial to pick a lender with not only a strong Jet card programmes are a bit like an old- in dynamic economies. Indonesia's business aircraft finance in the credit crunch have returned, interim repayments and a lump sum due at the end, balance sheet, but also a good industry reputation fashioned phone card: you buy a pre-paid aircraft fleet, for instance, has doubled in size in but by no means all. “Liquidity is still quite tight,” Mechanics of financing which helps buyers manage their cash flows. Loan and a strong network," adds Eva. "The type of card with a set number of flying hours. Other the last five years, which must make things very says Chris Partridge, a 30-plus year industry veteran The essentials of jet financing are fairly periods also vary, with some financers lending for people whose lifestyle requires a private jet are options for on-demand private jet travel much easier for executives needing to get about a who is Head of Aircraft Finance at Deutsche Asset & straightforward. Like getting a mortgage on a a maximum of five years and others prepared to busy enough. They don't just want a lender. They include branded charter services and air taxis. country with 922 inhabited islands (and, pertinently, Wealth Management, part of Deutsche Bank, which house, purchasers borrow against the value of the advance funds for eight or more. want someone who can sort out problems.” 210 airports). itself has been financing jets continuously for more jet (though sometimes other assets are used as Private jet travel makes a global work/lifestyle than a quarter of a century. additional loan security). The aircraft is typically not only possible but just about tolerable. It's not Chris' job is to sort out the funding to get high-net- owned by a bankruptcy-remote special purpose only the airborne hours that are more comfortable. worth individuals aloft. Clients like his are a mainstay company, a structure designed to protect the lender The morning-after-the-flight-before is better too: of the private jet industry. Manufacturer Bombardier if something financially untoward should happen to the cabin pressure on a G650 is set lower than on estimates that about one third of all business aircraft the client. commercial airliners to alleviate jet lag. sales are made to the ultra wealthy. As with most loans, terms and conditions depend

ANNUAL FLEET GROWTH RATE * FORECASTS 2013-2033 Global business jet fleet forecast 2013-2033

16% 40,000

12% 30,000

8% 20,000

45 10,000

0% 0

CIS 2013 2023 2033

AFRICA EUROPE

ASIA PACIFIC MIDDLE EAST Embraer Lineage 1000 LATIN AMERICA NORTH AMERICA GREATER CHINA

Source: Bombardier Business Aircraft, Market Forecast 2013-2033 Source: Bombardier Business Aircraft, Market Forecast 2013-2033 * Chart shows forecast compound annual growth rates

12 THE CANDY GPS REPORT 13 Island markets in focus

Whether it is for business, leisure or investment, there is an island to suit your The St Kitts scheme offers citizenship (and in turn properties in Beijing and Shanghai grew 24% and requirements. Paul Tostevin of Savills World Research looks in depth at three visa free travel to in excess of 120 countries 22% in the two years to July 2014, compared to just worldwide) for those buying property over 4% in Sanya over the same period. Longer term, very different island real estate markets $400,000. Crucially, no visit is required. Supported the opportunity is huge, however, particularly as by the scheme, the island’s real estate market China’s ageing and increasingly wealthy population remained buoyant throughout the global financial realise the benefits of a winter retreat close to crisis, with citizenship-investors accounting for their city base. restrictions on residency. Guernsey operates a two around 60% of all residential transactions. In Chinese investment Another major recipient of Chinese investment tier market, with the bulk of properties reserved for spite of foreign investor demand, property prices Hainan and Jeju Island into island real estate is Jeju, an island off South those locally born, while just 1,600 properties, or 6% remain low by Caribbean standards, tempered by Korea’s south coast. Jeju attracted 1.8 million of the island’s housing stock, are classed as "open high stamp duties and sustained levels of Chinese visitors in 2013, accounting for 45% of Hainan and Jeju are two islands that provide an market" and available for any UK or EU national to new development. all Chinese travelling to South Korea that year. A insight into the future Chinese wealth in island real buy. In Jersey, those who are not locally born may It takes a special combination of tax policies, short flight from China’s major east coast cities, the estate. Hainan is an island province of the People’s qualify under the "High Value Residency" system, real estate laws and business-friendly initiatives Chinese are attracted by the natural environment Republic of China, located in the South China which requires a minimum annual tax contribution to continue to attract this kind of wealth. These (the island is home to the natural World Heritage europe's safe haven business and leisure Sea. Three times the size of Jamaica, Hainan has of £125,000. Both islands have systems in place for are initiatives that can be replicated anywhere, Site Jeju Volcanic Island and Lava Tubes), but The channel islands THE CARIBBEAN, BAHAMAS a population of 8.9 million. It was earmarked by non-locals deemed "essentially employed". but the Caribbean, Bermuda and the Bahamas significantly, for gambling in the large integrated AND BERMUDA the Chinese government in 2010 as a test case for Having seen substantial price growth throughout have two major USPs: proximity to the huge wealth resorts and casinos. Located off the coast of northern France, the developing an "internationally competitive tourist the 1990s and 2000s, the markets continued to generating market of the United States and an Permanent residency is awarded to those who Channel Islands enjoy a mild climate, beautiful The Caribbean is a long established tourist hotspot, destination". record price rises at a time when many major appealing climate. invest more than $500,000 in the island, a policy natural environment and safe and secure a popular wintering destination for the super-rich Huge integrated resorts have been developed economies were seeing price falls, reflecting the introduced in 2010. After five years residents are surroundings. With a combined population of of the northern hemisphere. These islands are in Sanya, on Hainan’s south coast, the area which islands’ safe haven qualities. Between September eligible to apply for a South Korean passport, 165,000, they sustain a wide range of retail, a mixture of independent nations and overseas attracts the bulk of mainland Chinese property 2007 and March 2009 prices rose by around 20% which in turn has the benefit of visa exemptions in entertainment and dining, and are extremely well territories and dependencies of European Huge integrated buyers. These resorts with luxury shopping centres in both the Jersey market and Guernsey’s open more than 180 countries worldwide. This fuelled a connected to the UK and Europe through the and North American countries. Many can be classed and casinos cater specifically to China’s new market, over the same period, prices in Prime resorts have been wave of Chinese second home buyers, who now local airports and harbours. The Channel Islands as low tax jurisdictions, which also makes them wealthy with leisure time and disposable income London fell by 21% (see Figure 1 below). developed in Sanya account for the majority of second home purchasers comprise of two jurisdictions, the Bailiwick of appealing from a business and relocation to spend. Apartments in resort developments with Having proved resilient during the global financial on the island. Prices have since more than doubled Guernsey (encompassing Guernsey, Alderney, point of view. entertainment and shopping are favoured over crisis, price growth has been flat over the last year, since 2011. Herm, Sark, Jethou and Lihou) and the Bailiwick of The islands’ residential markets are heavily secluded villas. offset by high levels of stock in the markets aimed Jeju has proved popular with the Chinese Jersey. As Crown Dependencies the islands are self influenced by these historic ties, and buyers of Chinese investment in resort locations is an at UK and international buyers – a group that because of its accessibility to the Chinese mainland, governing, setting their own laws and taxation and prime residential property from "country home" emerging phenomenon, as the majority of wealthy remains price sensitive. Recent active buyer groups gambling and resort offer, coupled with a favourable have developed a strong financial services sector. markets dominate market activity. For example, Chinese spend their leisure time visiting cities. include those relocating within the financial services immigration regime. In spite of recent price rises, The islands have long attracted wealthy individuals Barbados, formerly a British colony and today still Consequently, prices in Hainan have significantly sector, and returning expats: UK nationals formerly the island is comparatively cheap compared to the from the UK and beyond who seek a high quality part of the Commonwealth, continues to enjoy the underperformed those of the major mainland based in Asia or North America, seeking a low tax mainland Chinese cities. of life combined with an advantageous tax patronage of high-profile British buyers. cities (see Figure 2 below). The price of newly built base closer to family. environment. Limited in land, the islands operate When it comes to concentration of wealth in the region, Bermuda tops the list, with the highest GDP Figure 1 – Guernsey and Jersey per capita of $84,000 – fourth highest in the world FIGURE 2 – HAINAN VERSUS BEIJING AND SHANGHAI house price performance by some measures. Bermuda also has the highest HOUSE PRICE GROWTH (NEW PROPERTIES) concentration of UHWNI property holdings of any GUERNSEY JERSEY PRIME LONDON BEIJING SHANGHAI SANYA (HAINAN) HAIKOU (HAINAN) (Open market median, (All property mix island outside the US. Billionaires including Michael 2 year rolling average) adjusted average) Bloomberg and Ross Perrot have homes on the 130 island. Located just two to three hours from the US 125 140 east coast, there is no income tax. Most homes are 120 130 understated, built in the "Bermuda vernacular" of 115 120 painted stone with wooden shutters. Tucker’s Town 110 110 is the area of the island where the ultra-wealthy 105 INDEX 100 100 congregate, enjoying some of the island’s best views 95 90 and adjacent to the island’s best golf courses. Real estate "golden visas" or visa investor 90 80 programmes are increasingly a key strategy of 85 INDEX SEPTEMBER 2007=100 70 reviving depressed residential markets around the 80 60 world and building on wider economic recovery. JUL 12 JAN 13 JUL 13 JAN 14 JUL 14 Some of the first of these schemes were introduced APR 12 OCT 12 APR 13 OCT 13 APR 14 JUN 05 DEC 05 JUN 06 JUN 07 DEC 07 JUN 08 DEC 08 JUN 09 DEC 09 JUN 10 DEC 10 JUN 11 DEC 11 JUN 12 DEC 12 JUN 13 JUN 14 DEC 06 DEC 13 in the Caribbean, the longest running of which was established in St Kitts and Nevis in 1984. Quan Yin in Sanya city, Hainan Province, China Source: Savills World Research, National Bureau of Statistics Source: Savills World Research, Guernsey Policy and Research Unit, Jersey Statistics Unit

14 THE CANDY GPS REPORT 15 A GREEN and PLEASANT ISLAND?

Investors in islands need to be mindful of how vulnerable these micro that are abundant on many islands. "At current price economies can be. Due to climate change and other factors, the sustainability levels, renewables combined with energy storage solutions can compete with diesel-generated of island life is under greater threat than ever, says Michael Schneider of electricity without any subsidy," he says. Deutsche Asset & Wealth Management When it comes to investing in renewables, islands are in many instances streets ahead of their mainland neighbours. Some of the most slands have long held a special allure for ultra HOOKED ON DIESEL WASTE DEEP ambitious renewable energy programmes on the high net worth individuals: as locations for It was not ever thus. Alex Voigt, a serial Often isolated, resource poor and with concentrated planet – in scope if not in scale – are taking place on I holiday homes, as development and investment entrepreneur in the renewable energy space who economies, islands face other challenges besides islands. The Marshall Islands in the North Pacific, opportunities, even as secluded permanent has worked on projects on a number of islands, high fuel prices. Waste management is often for example, are in the process of constructing residences. But these bounded habitats are fragile: says: "A hundred years ago, most islands were an acute problem, especially for islands whose the world’s first ocean thermal energy conversion environmentally, economically and culturally. When self-sufficient. People travelled under sail, and for populations are periodically swelled by temporary plant. Once operational, it is expected to produce things go wrong the tourists stop coming, property fuel they primarily burned materials that had grown visitors. The million tourists who descend on the electricity below $0.20 per kilowatt hour – two thirds and land prices plummet, populations decline - on the island. Now everything is driven by diesel: Maldives each year produce 3.5kg of rubbish cheaper than the cost of diesel-generated power. islands can die (see box: "Micro (un)economics"). from the water treatment plants, to the electricity each per day. Most of it ends up on an island Solutions do not necessarily need to be hi-tech: Consequently, investors need to take extra care generators, to agriculture." called Thilafushi, a giant landfill site that some a social venture in Vanuatu has brought clean before committing capital to an island economy. With diesel prices rising over past decades environmental groups say poses a threat to the local electric light to more than half the island’s off-grid Maldives "Some of the biggest long-term risks to your (see chart below), many island economies – and environment. Water management and dependency households by distributing 40,000 affordable solar- investment on an island won't show up in traditional the mainland governments that typically have to on food imports are other common challenges. powered lanterns. Whereas rural families previously financial analysis," says Michael Schneider, Head of subsidise them – are feeling the strain. It's a double had no option but to use kerosene-fuelled lamps, sUSTAINABILLIONAIRES be the first to make the transition. Within three Environmental, Social & Governance at Deutsche the eco-friendly alternatives have the added benefit The earth's island jewels face an uncertain years the Virgin boss wants solar and wind to Asset & Wealth Management. "For example, of freeing up fuel to use for cooking and heating in future. But at least there are plenty of people supply 80% of Necker’s energy needs. The transportation costs, local fossil fuel subsidies Diesel Prices, 1994-2014 the winter. eager to fight their corner – including some high long-term goal is 100%. and a lack of proper waste and fresh water 5 "From water management to electricity generation, profile UHNWIs. management may require you to adjust the technologies already exist to make island 4.5 In 2012, Oracle CEO Larry Ellison bought Micro (Un)Economics conventional assumptions." life sustainable," says Voigt. "What's important

4 the Hawaiian island of Lanai for an undisclosed

ISLAND TALES is to integrate appropriate solutions as part of a sum. Once the world's biggest pineapple UNDER THREAT 3.5 comprehensive, long-term strategy." plantation, then a resort, the 141-square mile NAURA, MICRONESIA Michael leads a team that specialises in ESG 3 isle, which has few paved roads and not a Naura’s wealth was a blessing from above: the (environmental, social & governance) investing, HURDLES 2.5 single traffic light, has suffered economically Micronesian nation’s phosphate deposits were an approach that incorporates non-financial Though there are good reasons to be hopeful, in recent years as tourism waned in the last derived from the droppings of sea birds. Its factors into the investment process with the aim 2 Schneider says it is crucial for wealthy investors global downturn. fortunes turned in the 1980s when phosphate of generating superior risk-adjusted returns to take a holistic approach in analysing whether (D ollars per G allon ) 1.5 According to Pulama Lanai, Ellison's started to run out. Today, 90% of the islanders over the long term. When analysing a single stock, an island makes a good home for their capital. U.S. N o 2 D iesel R etail P rices local development corporation, the billionaire's are believed to be unemployed. to take the simplest example, a portfolio manager 1 "The biggest obstacles to switching to a more vision is to turn Lanai into self-sufficient might examine a company's environmental track 0.5 sustainable approach are often not technological, or "thriving model of sustainability", establishing MAMAIA, ROMANIA record and the social cost of its business activities, even financial," he says. "Legislative and regulatory 0 a community "powered by solar energy, where Five miles long and just 300 yards wide, both of which can have a major impact on barriers in many instances make it very difficult to electric cars would replace gasoline-powered Mamaia is one of Romania’s most popular long-term profitability. effect change. For instance, some island economies 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ones, and seawater would be transformed into tourist destinations. Though still popular, It's a holistic way of looking at potential are locked into long-term contracts with fossil fuel fresh water and used to sustain a new organic the resort faces a battle for survival against investments that is especially relevant to islands. Source: US Energy Information Administration, U.S. Diesel Retail Prices (Dollars per Gallon) providers, or they have monopolistic laws that farming industry that would feed the island coastal erosion, primarily due to reduced With climate change, market forces and economic actually preclude renewable energy providers from and supply produce for export." Pulama Lanai's sediment flow as a result of engineering works development endangering the viability of island installing generation capacity." hope is to create a model of sustainability for on the Danube and its tributaries. communities worldwide, the threat to the world's whammy: not only is the fuel itself pricier, islanders A WILL AND A WAY Nevertheless, Schneider remains optimistic others to follow. minor land masses is greater than ever. According also have to pay more for it to be imported. Encouragingly for would-be investors, the cloud about the future of islands and their potential as Richard Branson is backing a similar initiative SAINT LUCIA, CARIBBEAN to a 2012 United Nations study of island "Expensive fuel is making it difficult for many over island life has a silver lining: rising fuel costs investment destinations for ultra-high net worth focused on the Caribbean. The 10 Island Once over-reliant on its banana crop, Saint communities in the Pacific ocean, for instance, islands to survive," says Voigt, who founded and other threats are motivating islanders to seek individuals. "The sustainability-related initiatives Challenge – established by a sustainability- Lucia has successfully diversified its economy. "sea level rise, tropical cyclones, floods and drought, Youcinos, a Berlin-based energy management more sustainable ways of life. Around the world, taking place on islands around the world are focused non-governmental organisation The returns brought to the island by tourism, combined with pressures from unsustainable startup. The Maldives, for instance, spends more individuals and institutions are seeking to mobilise incredibly exciting. If they succeed, islands will called the Carbon War Room, which Branson trans-shipment and petroleum storage have fishing practices and coastal development, than one-quarter of its GDP on diesel to run private and public sector funds to wean islands off not only become even more attractive investment co-founded – aims to wean islands off carbon- been sweeter than the potassium-rich fruit and consumption and production trends, are electricity generators, with the government paying fossil fuels and establish more robust economic locations. They'll potentially also establish a based fuels. Branson's own island, Necker, will could ever produce alone. rendering the livelihoods of some 10 million people substantial subsidies to keep energy bills affordable models, including UHNWIs Larry Ellison and Richard template for improved living conditions in the rest increasingly vulnerable." for the 400,000 residents. On the Caribbean Branson (see box: "Sustainabillionaires"). of the world, whether that is a waste management islands, electricity costs about five times what it According to Voigt, it is now economically viable to solution for Asia's mega-cities or an electricity The above material is for general information purposes only and has not been produced or reviewed by any Research Department in Deutsche does on the mainland United States. switch to an energy network based on renewables solution for an off-grid location in Africa." Bank. The value of investment can fall as well as rise and you might not get back the amount originally invested. such as solar and wind power, natural resources

16 THE CANDY GPS REPORT 17 FUTURE Contributors TRENDS

Yolande Barnes of Savills World Research looks at the factors that Candy & CAndy Omni Capital are changing the shape of island real estate markets Nicholas Candy Katy Long Dan Smith

Nick is CEO of global luxury real Sales Manager at Candy & Dan embarked on his career in estate brand Candy & Candy. Candy, Katy’s primary focus is on real estate at Land Securities Previously Nick worked at KPMG, advertising business development from new and emerging Trillium and then went on to join Eurohypo Three game Three NEW agency J. Walter Thompson and Dentsu markets (Russia and former CIS). Having in 2003. As Managing Director he was Group for Europe, where he became the graduated from Edinburgh University with a primarily focussed on structured finance changers TRENDS youngest director. Since its conception in 1999, degree in Russian, Katy lived and worked in and development finance, responsible for Candy & Candy has become one of London’s Moscow for five years as Editor of Conde Nast originating, structuring and managing many leading interior design and development Russia and Conde Nast New Markets. Fluent central London residential developments, Drive for global tax The desire for the management firms; its most notable projects in Russian, Katy contributed articles to several including financing the development of transparency: authentic: to date include 21 Chesham Place, Belgravia, Russian news outlets, including Ria Novosti, One Hyde Park. Dan is now at Omni Capital, The role of offshore financial centres is evolving in the global The wealthy seek what is rare, and "authentic" islands offering and the globally celebrated One Hyde Park Kommersant, Afisha. where he specialises in structured financed drive for tax transparency. In the latest Global Financial Centres culture, history and heritage may find themselves with an edge, (onehydepark.com) in Knightsbridge. and residential development financing. Index, offshore centres have seen their ratings build, but lose particularly as the buying habits of the emerging wealthy ground relative to "onshore" financial centres. Islands are carving mature. European islands with a rich built environment, distinct out niches through specialising, leveraging skilled workforces heritage and culture will appeal as an antidote to ever more Savills and building on links to city-financial centres, while establishing globalised world cities. Another trend may be the wealthy relationship with new markets. Economic diversification is seeking to preserve or even restore natural landscapes, with becoming a priority for many. The real estate landscape will be a view to create a long lasting legacy as well as experience it Yolande Barnes Paul Tostevin Charles Weston-Baker shaped by the success of these initiatives. and become part of it. Yolande set up Savills residential An Associate Director in Savills Charles heads up Savills research department in 1989 World Research, Paul delivers International Residential and today has expanded her remit as head market-leading research on major global real & Resorts team and has over 30 years of New transport Increasing global of Savills World Research to all types of estate markets and the forces that shape development, consultancy and sales and infrastructure: wealth: cross-border real estate in both established them. Writing research publications, he also marketing experience in international and emerging markets. She advises a wide undertakes consultancy for clients with residential and resort property. He has Air travel revolutionised the real estate market on many islands. The global UHNW population reached an all-time high of nearly variety of high level clients on strategic, cross-border requirements, and has been a provided consultancy and agency work on over It also provides important links to major cities, critical to the 200,000 in 2013, and is forecast grow by 22% by 2018. The development, investment and policy issues, commentator in the international press. Paul 200 development projects in over 80 countries development of offshore financial centres. A new airport can growth in wealth will fuel demand for alternative real estate, producing regular reports and articles on UK joined Savills in 2008, initially focusing on UK on four continents. Prior to joining Savills, he bring an island to the global stage: on St Helena, currently one with a particular boost from Asia, the region where it is set to and global cross-sector market trends. Yolande residential and development research. Prior to was with Bovis/P&O for 11-years, where he was of the most remote islands in the world, an airport is under grow fastest. For these newly wealthy "agglomerators", leisure regularly appears in the international press, on Savills, Paul worked in finance in both London director responsible for a number of major construction. Set to open in 2016, direct flights from the UK will islands are most likely to appeal. Asian wealth will demand a very television and radio. and New York. international development projects. open up the island to tourism, and in the longer term, paves the different product to that desired by the west. The Chinese, for way for wider real estate investment. Further ahead still, the example, are yet to seek remote hideaways. Rather, integrated prospect of rapid intercontinental travel will bring remote islands resorts with entertainment, shopping and importantly, gambling, and archipelagos within closer reach. This will open up more will drive demand. The success of Sanya, Hainan and Jeju is Deutsche Asset & Wealth management island markets to a wider audience, but may actually threaten testament to this. the hideaways of the "dispersers". Salman Mahdi Tom Slocock CHRIS PARTRIDGE

Following 18 years in corporate Assumed the role of CEO of Chris has 30 years experience Islands to revive a Philanthropy and and investment banking, private Deutsche Bank’s UK Wealth in the aviation sector, starting country’s economic conservation: equity and wealth management at American Management division on 1 March 2009. out training as a pilot before becoming an prospects: Express Bank, Merrill Lynch and Abraaj Capital, Tom has spent his entire career in the aerial surveyor in the Middle East. He joined the latter where he was a founding Partner, wealth management industry, having Deutsche Bank 20 years ago and currently For indebted economies still reeling from the global financial Second or third generation wealthy individuals, accustomed Salman joined Deutsche Bank in 2003. Currently previously worked in the Private Client leads Deutsche Asset & Wealth Management's crisis, islands are a saleable asset that can help to balance the to money and becoming more interested in its lasting impact, Head of Key Clients Relationship Management Services groups at Credit Suisse, Goldman global private jet financing team. Since early books. Greece boasts 6,000 islands, and has embarked in selling will pay an important role in island markets. We anticipate and the WM-Corporate Finance Partnership, Sachs and Lehman Brothers. Tom's focus has 2013, Deutsche AWM has financed jets worth off some of these to revive its economic prospects. that a proportion of these philanthropic UNWIs will seek their he is also coordinator of the “Platinum Clients” been working with wealthy and sophisticated in excess of $700 million for private clients in own "eco domains", islands where they can restore or maintain programme and is responsible for the delivery UK based individuals and families, and helping Europe, the Middle East, Asia, South America whole ecosystems and do their bit for the planet. These buyers of One Bank services to Deutsche AWM’s to source bespoke solutions tailored to and Africa. are behaving in a similar way to some government and non most significant clients. their specific needs. government organisations who seek to preserve ecosystems by purchasing islands for prosperity, and who currently constitute one of the largest buyer groups in the private islands market.

18 THE CANDY GPS REPORT As global wealth increases and infrastructure is revolutionised, investors seek island opportunities that are both rare and authentic

Nicholas Candy, CEO, Candy & Candy